Embodiments of the invention described in this specification relate to a process for providing physical gold-back rebates on purchases by a secured gold-back savings system.
Loyalty programs, rebate clubs, and all other forms of loyalty programs rebates and rewards, including fiat cash-back (government-issued bonds or IOU's) go to zero value eventually, are not universal or ubiquitous, through time and space as pure gold is. Also, fractional reserve traditional banking of fiat currency now involves low (i.e., below true inflation rates) or even negative interest rates, and even “bail-ins” of depositor monies usurpation as unsecured creditors upon bank failures. Rebates from purchases are also deemed non-taxable by the IRS.
However, there exists a dilemma between Keynesian (print & spend) and Austrian (mint & save) economic camps: that is, “How do I spend for what I want and need now, and still save for the future too?” Since all other forms of rebates or rewards lose value, go to zero, are not universally or ubiquitously accepted at face (weight/content) value, this problem is exacerbated.
On the other hand, gold is a precious metal that counters the typical value-losing rewards that currently exist. Space and time are not barriers or causes of loss to gold's eternal and universal value recognition. Gold's value has been notable throughout human history and geo-political experience. In particular, pure physical gold has at least a 6000 year history of retained value, is universal and ubiquitous for recognition of its value, and gains value as all other currencies and rewards lose value. Gold also gains for inflation in the face of other inherent losses of all other rewards/rebates/currencies. Gold has an accountable track record of compounded annual growth, with rates that are calculated by most metrics to be well over 8% over the last 44 years.
Plus, all rebates on purchases are deemed non-taxable by the IRS, so rebates provide a tax savings where income and capital gains are typically taxed. Unfortunately, none of the existing loyalty and/or rebate methods/systems use gold.
Therefore, what is needed is a way to use gold to in a way that rebate or value-back propositions are universally accepted, ubiquitous, and able to retain or gain value over time.